The state is all set to roll out the new goods and services tax (GST) from July 1, as the J&K Cabinet has approved the draft to be passed in the special Assembly session being held from June 17 in Srinagar.
This was announced by Finance Minister Haseeb A Drabu at a press conference after the Cabinet meeting held under the chairmanship of Chief Minister Mehbooba Mufti here today. The state Legislative Assembly would discuss the extension of the 101st Amendment to the Constitution to J&K. The extension had three aspects —- constitutional, administrative and legal, he said, adding that the state Cabinet would have to reintroduce the GST after five years, he added.
“We have prepared the draft that will be taken up (in the Assembly) for application in a modified form,” Drabu said.
When the GST is extended to the state after being passed by the state Assembly, there would be “no compromise in any way” on Article 370, he said. “The J&K will be having its own SGST (state GST) while other states have a uniform SGST apart from the IGST (integrated GST) and CGST (central GST). In J&K and north-eastern states, it will be like VAT while there are no exemptions in the GST, the Finance Minister said. The Finance Minister clarified that in case the GST was not made applicable, there would be no business and traders would have to pay two taxes. The state would benefit from the GST, he said, adding that the government has been in constant touch with the traders’ community in the state over the issue since December last year.
GST from July 1, no impact on Article 370: Finance Minister
